What Types of Debt Can be Included in a Debt Management Plan?

September 29, 2014

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At InControl we understand everybody’s financial situation and struggles with debt are different and endeavour to help as many people as possible. Unfortunately, there are some forms of debts our debt management plans cannot cover such as mortgages and other secured debts.

Here are some of the forms of debt you can pay off with the help of a debt management plan:

Unsecured Personal Loan

An unsecured personal loan is a loan acquired without offering collateral. Missing payments can reflect poorly upon your credit rating, making it difficult to apply for credit or loans in the future. If your repayment amounts are too high for you income, a debt management plan could help restructure the payments more in-keeping with your financial situation.

Doorstep Loan

Although they evoke images of gangsters demanding repayment on your doorstep, a doorstep loan is an umbrella term for certain types of instant loans. Some doorstep loan companies suggest you could receive the loan within 15 minutes. However the repayments can often incur large rates of interest and harsh penalties for missed payments. This makes a debt management plan perfect for those struggling to repay a doorstep loan – an InControl advisor may be able to freeze interest rates and additional charges.

Payday Loan

Payday loans are generating a lot of negative press at the moment. Designed to tide you over until payday, these loans often contain extortionate interest rates. A debt management plan may help you avoid paying these high interest rates, and just repay the borrowed amount.

Car Finance

If you are still paying finance on a car you have sold or no longer have, InControl may be able to help restructure your repayments to better suit your financial situation.

Mobile Phone Debts

Your monthly phone bill may not be the most consistent of your outgoings, especially if you are on a tariff with heavy costs for additional services such as internet usage and data roaming. If you have developed mobile phone debts above your repayment capability, a debt management plan could restructure payments to cover the debts in full without penalties.

Contracted Service Debts

If you are still paying bills for contracted services which you don’t use anymore such as nursery or gym memberships, a good chunk of your monthly income could be going to waste. If your providers won’t cancel the memberships without charge, a debt management place could repayments more affordable and achievable.

Rent Arrears

Much like car finance, if you have been forced to move from a rented property because you cannot afford the cost of rent, a debt management plan could help you restructure payments better in line with your financial situation.

Utilities

Missing a utility payment can be devastating with suppliers cutting off gas/electricity/water. This makes it incredibly important you can afford your monthly bills. A debt management plan is designed around your financial situation to help ensure you are risking the utilities being cut off from your home.

Back Account Overdraft

If you are in your bank account’s overdraft, it can be a slippery climb getting out of it. Monthly repayments can be factored into a debt management plan, making it more affordable to pay off the overdraft and get back into credit.

Credit Card

Credit card holders struggling to pay off their monthly bills and interest rates can benefit from a debt management plan restructuring their repayments. Additionally, a debt management advisor may be able to encourage the credit card provider to freeze interest rates.

Store/Catalogue Card

Store and catalogue cards can seem like a great deal initially, but after the original benefits can become difficult to pay off and may incur large charges for late repayments. Incorporating them into a debt management plan can help restructure the repayments better suited to your financial situation.

For more information about home a debt management plan can help you, visit our dedicated page or call our expert advisors on 0800 072 6623.